Intel
Intel (INTC) shares are trading higher than 7% for the day after a flurry of headlines hit the wires this morning.
Reports from Bloomberg and other sources indicate that Intel may be considering splitting the company’s assets between its product and foundry businesses. The move comes as Intel is trading at prices not seen since 2015.
Shares of Intel are trading in a long-term bear market trend. However, the $20 level has been supported for the stock over the last month.
Today’s rally off the $20 level threatens to break above the stocks top Bollinger Band. A move above the top Bollinger Band would trigger a volatility rally that is likely to carry the stock to its 50-day moving average. That trend line currently sits at $27.
Both short- and long-term investors appear interested in Intel as the stock is trading on this news with heavy volume.
Options activity on the long dated 2026 leaps are starting to increase in volume on the call side, indicating speculative interest in today’s headlines.
Intel remains in a long-term bear market trend with a near-term price target of $27.
Ulta Beauty
Shares of Ulta Beauty (ULTA) are trading more than 4% lower today after the company disappointed on their latest earnings report.
For the Rose recent quarter, the company missed earnings per share targets by $0.17 as well as missed on their revenue estimates. Comparable sales were down 1.2% for the quarter,
In addition, Ulta Beauty’s management guided their fiscal year 2025 projections for earnings per share and revenue below Wall Street’s consensus targets.
The company’s results follow a poor quarter of earnings for competitor e.l.f Beauty (ELF). Both companies’ earnings results reflect some weakness in consumer discretionary spending.
All the shares are now challenging the $350.00 price level. The stock surged above that price after headlines at Warren Buffett’s Berkshire Hathaway had initiated a new position in the stock in mid-August.
With Ulta’s 50- and 200-day moving averages both in bearish trends above the stock, investors will want to be keen on watching the $325 price level as a break below that is likely to target a further decline to $300.
Ulta shares remain in a long-term bearish trend with a price target of $300.
Super Micro Computer
Super Micro Computer (SMCI) shares continue to try to find support at their long-term 20-month moving average.
We outlined this potential support earlier this week (click here for the full story).
The stock was rocked earlier this week as a short seller’s report and News that the company would be delaying their 10K filing with the SEC has investors worried that the company’s troubles may be just beginning.
This isn’t the first time that the company could be embroiled in an accounting scandal.
Shares of SMCI were temporarily delisted from the NASDAQ exchange in 2018 as the result of failure to file financial statements.
Numerous analysts have been quick to defend the AI company’s situation, however these situations are often worth allowing to play out for a few weeks as investors continue to lay their judgement on the stock.
For now, the stock has seen almost precision support at its 20-month moving average and the round-numbered $400 price level.
From a short-term perspective, the $400 level is the one to watch closely as options traders have been adding large put positions at this strike price.
A break below that round-numbered support and the large put open interest will magnify selling on the stock as investors increase their selling pressure and the options market deals with a hedging situation of those puts as they move in the money (below $400).
We will follow-up on this situation further next week.
